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Wates boosts cash, profit and turnover in stellar 2016

Wates Group had an order book of £3.6bn going into 2017 having delivered a strong financial performance in 2016, it revealed this morning.

The Surrey-based group boosted turnover by 20.4 per cent to £1.53bn (from £1.27bn) in the year to 31 December 2016, with growth of 39.6 per cent in construction and 8 per cent in property services, including through its joint ventures and associates.

Wates, which was last week shortlisted as Contractor of the Year and for Health and Safety Excellence at the CN Awards 2017, released an abridged version of its results this morning, with full results yet to be posted at Companies House.

Its pre-tax profit rose 17.1 per cent to £35.5m, while cashflow from operations was up 22.5 per cent to £71.7m.

Group cash was up 50.4 per cent to £191.6m.

Other highlights:

Following the start of its Birmingham City Council maintenance contract, Wates Living Space now maintains over 500,000 homes on behalf of housing associations and local authorities across the UK.

It had a total of 2,500 new homes either completed or under construction during 2016.

Major contract wins came from clients including: the Defence Infrastructure Organisation; Select Property Group; GlaxoSmithKline; HSBC; Royal Mail; Marks & Spencer; Gatwick Airport; the Houses of Parliament; the University of Cambridge; and the City of London Corporation.

Wates chief executive Andrew Davies (pictured) said: “We are encouraged by the company’s operational performance, which has produced these results.

“We have put in place the right systems, right processes and right people to meet our strategic objectives.

“The successful integration of SES Engineering Services as well as a number of construction projects from Shepherd Construction has broadened our coverage and capabilities.”

Mr Davies described the company’s growth in construction output as “particularly encouraging” given uncertainties in the sector.

“We believe we are well positioned to keep delivering for our clients because of the quality of our people, our stable supply chain and our focus on the communities in which we work,” he said.

“At the heart of everything we do is an absolute commitment to health and safety. In 2016 we introduced our company-wide ‘We’re Safer Together’ zero harm campaign, giving us a structure around which all our efforts will be focused over the next three years and beyond.”

Wates boosts cash, profit and turnover in stellar 2016

Readers' comments (1)

  • Since when did 2.2% profit = stellar??

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